There has been a lot of focus on the stamp duty holiday of late, and how it is helping people buy property. However, not everyone is in a position where they can buy a home right now. If you need to increase the size of your deposit, it makes sense to find a place to rent where you can put money aside each month.
However, you also need to stay somewhere that is safe, secure, pleasant and allows you to travel to work or meet with friends. Even with remote working being integral to many people’s daily routine right now, you need to consider what will happen when things move forward.
If you are looking to rent locally, you will find Hornchurch has a lot to offer. We are pleased to say the local market is thriving and vibrant, and we can help you find your ideal option.
Havering is a suitable London borough to save money when renting
In the study by flatfair, Havering was listed as the third best London borough to rent a place in the hope of saving money.
One area that is hugely pertinent in the study is the monthly rental fee on a one-bedroom property. In Havering, this has been listed as £886. If you are a couple, sharing the bedroom and splitting the rental cost between you, this isn’t too bad a price and it should help you put funds aside for your deposit at a later date.
It is important to note the amount you would expect to spend on bills, council tax and recreation. The flatfair study suggests a sum of £2,786.54 for Havering, and again, if this is split between a couple, it will hopefully be an affordable sum of money.
The study suggests renting in Havering provides the opportunity to save £2,317.73When you consider the average cost of buying property in the borough, saving for a 10% deposit will take just less than 20 months. If you are looking to save for a 15% deposit, it should take just less than 29 months.
This seems like a long time, but it is two and a half years. If you are committed to owning property, saving for two and a half years isn’t overly ambitious, and it should enable many people to raise the funds they need to step on to the property ladder.
Franz Doerr, CEO of flatfair, said: "It’s an outdated attitude to think that the first rung of the housing ladder only starts when you are finally ready to buy your first home. More people are renting for longer than ever, and the economic impact of Covid-19 is only going to accelerate that trend. However, many renters will eventually want to own their home and their ability to have consistently paid rent on time should be taken into account by lenders who may be imposing stricter mortgage requirements for some time. Otherwise, we risk making homeownership an unattainable goal for many which will distort the entire housing market.”
If you are keen to stay in touch with the local housing market, we can help. At Hunters Hornchurch, we are on hand to ensure you receive all the guidance you need in the local property market, and we are here to assist you.